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option8

Calling FSBOs and FRBOs

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We had a motivational speaker, who specializes in working with investors, at my local REIA meeting tonight. He gave one very good technique that fits well with this thread. I do not know if this story is true or made up to make a point. Either way, I think it is a viable solution.

 

This speaker stated that he has a student that is determined to be a L/O investor. However, the student is deathly afraid of talking to sellers on the phone. In fact, he pays $200.00 a month for a newspaper add and he is too scared to answer when sellers call.

 

The typical solution to this problem would to force yourself to make cold (warm) calls until you felt comfortable.

 

The speaker felt that a more creative way was needed, so he asked his student where in the United States he would absolutely NOT do a deal.

 

The student replied New Mexico. The speaker then had his student locate fsbo’s in New Mexico on the internet and start making calls. The theory here is that no results are expected or desired, so the fear level should be largely diminished. He also felt that too much disappointment from his home area might cause the student more harm than good.

 

The happy ending to this story is that after about 50 calls the student called a seller in New Mexico that was extremely motivated. The student was so upset that he could not work the deal; he immediately started calling sellers in his home area.

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-Tony-

 

Your post are great but I just don't think you understand some of the markets we are in ex. this ad could run and sell in 10 days or less

 

 

I have to admit that you may have made a correct assessment of your market and your ad is funny.

 

I apologize if I seem insensitive to the unique challenges in your market...I really don't mean to minimize the tough market you are in.

 

I will say to you that there ARE people out there who have no equity, bought and have to sell fast, are being transferred or just had a death in the family, etc. We just have to figure out a way to unearth them.

 

How big is your market? Can you go to the fringes where the activity isn't so great? How about to the area of town that is exactly opposite to the hottest market?

 

We'll figure it out...

 

option8

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oh oh, I found one with FAT equity, owner in trouble here obviousley, have made time to speak with him this afternoon.

home about 120 miles away, but towards the Casinos :)

 

..I mean, near Mum and Dad' house.

 

wish me luck, we'll need to act fast on this one or miss out.

Price: $103,000

FMV: $240,000

Beds: 4 Baths: 2.5

 

4 weeks until foreclosure, 11,000 arrears

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well I must admit, it was an ad that I answered, although I don't have an issue with the phone...in fact, give me a phone I can do most anything.

Ask Chris , I can talk under wet cement.

I have more tongue twisters when I am face to face!

Not a good thing, I am working on it. I think alot depends on the mood you're in right on the day.

 

*Update,

 

just got an e mail from a seller who is willing to accept my offer of $0 down on a $90 home in DFW area .

 

I kill me. ( the phone again....)

 

He tells me( :) ) that there is a 1st of $75K and no little hidden LA LA's for later.

Of course, going by Michael's "sellers are story tellers" scenario, I have advised him that NOW would be the best time to disclose anything I might 'unearth' before I come back to lower my offer.

 

The $3k option money would be rolled into the repayments, I will set about locating a tenant IF the DD comes back ok, we would purchase at the same 75K +3K ,and resell for the $95K+ L/O.over 24 months.

 

This will be subject to his producing a report of ANY blah's we will need to be aware of, and NO payments until the t/b moves in.

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PPfftt, 95K my foot, that should be $105,000, nearest comps are $113,000+

now it looks better...always re read your posts Kez LOL

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:lol: Hello to all just want to say count me in! I've been lurking around this site for a while and figured now is the time to stop making excuses!

 

With all the support here there's no way, I could fail. Huh? B) So count me in!

 

:):)

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Go for it! everyone is here to help, this thread was a cool idea.

Kez  :lol:

Very good idea, indeed! There's nothing like a public acknowledgement of your commitment, or lack thereof, to be held accountable to.

Great idea, Option8!

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Hello I also have been lurking for a while and figured I may as well jump on the FRBO/FSBO challenge. A couple quick questions though how do you get the seller on a FRBO to accept a no deposit no money down deal? and are they willing to give you time to look for a tenant buyer?

 

-Brandon

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Hello I also have been lurking for a while and figured I may as well jump on the FRBO/FSBO challenge. A couple quick questions though how do you get the seller on a FRBO to accept a no deposit no money down deal? and are they willing to give you time to look for a tenant buyer?

 

-Brandon

Look, everyone! New meat! B):lol:

Greetings, Brandon, and welcome to The Naked Investor! Glad to see you're out of the shadows and into the bright lights of accountability. This is your first step to go from reading to doing. You'll find loads of help and support right here, too.

As for your questions.......there is no one way to do this business. All of us have our own methods to our madness. For starters, assume that the deal will go down just that way: no money down. If you think this way of doing business is an aberation, it just may work out that way for you. Consider it the norm and you'll be pleasantly surprised at how deals work out this way. If you have read through many of the deals that have been written about on the board, you'll see that most are just that: little to nothing down deals. Same thing with the needed timeframe you referred to.

You've heard this before, but it bears repeating. We are dealing with motivated sellers. If you can provide a solution to their problem, in exchange you'll receive the terms necessary to make the deal work for you, too.

Good luck, work hard, and let us know how we can help!

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So everyone...

It's now time for the accountability check! How did you do?

 

Did you actually pick up the phone and make your calls?

How many answering machines did you get? Did you leave a message? How many people did you talk to?

 

Did you find any motivated sellers?

 

If you didn't get thru the calls, no problem...Keep dialing until you finish and post the results.

 

option8

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Thanks Option8. I'm still calling...left messages when I got a machine, talked to people when they did answer. I've had one call that seemed promising but nothing has come of it yet...we'll see. I'm continuing the challenge....

Gary

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Ok, accountability time..

Our TX deal fell through, simple reason, we had all the papers written up , along comes Mr 'Smith' with cash...oh well, ca$h won this one.. I would have done the same thing if I were him too.

 

Next Please !

Our offer of 125K went into our FAT equity owner today, poor lady, it was her father's house, but it's me, foreclosure or somebody else will hook it from her.

Of course she has rejected our offer, but she did ask " May we please phone you back if we change our minds?" I said sure !

She has had it for sale for way too much anyway, and cant bring herself to lower this 'sentimental' overpricing policy she has...but time is against her anyway, so it's her call.

 

Our Fairfield Bay deal is still on the go...wish us luck.

 

http://www.naked-investor.com/forums/index...?showtopic=1868

 

 

We also made offers on 11 lots of land from the state today, will keep you posted.

 

Chris B) & Kerry. :)

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